Remaining fime: 1 hou, minutes, 2 seconds. Question Completion Status: QUESTION
ID: 2562380 • Letter: R
Question
Remaining fime: 1 hou, minutes, 2 seconds. Question Completion Status: QUESTION 13 A reason why absorption costing income statements are sometimes difficult to interpret is that: O they omit variable expenses entirely in computing net operating income. O they shift portions of fixed manufacturing overhead from period to period according to changing levels of inventories they include all fixed manufacturing overhead on the income statement each year as a period cost O they ignore inventory levels in determining cost of goods sold. QUESTION 14 Generally speaking, net operating income under variable and absorption costing will: O always be equal. O never be equal. O be equal only when production and sales are equal O be equal only when production exceeds sales QUESTION 15 Allocating common fixed expenses to business segments: O may cause managers to erroneously discontinue business segments O may cause managers to erroneously koep business segments that should be dropped. O ensures that all costs are covered O helps managers make good decisions. QUESTION 16 Click Save and Submit to save and submit. Chick Save All Answers to save all answers. Save All ArExplanation / Answer
Q13.
Answer is: They shift the portion of fixed manufacturing overheads from period to period according to change in level of inventory.
Q14.
Asnwer is: Be equal when production and sales is equal.
Q15.
Answer is: Ensures that all cost are covered